Under ordinary circumstances special allowance stands for that allowance which is paid to some 'special category of employees and not to all employees. If so, special allowance will not qualify for PF contribution as was decided in a lot of cases, the latest in that series is Gurukripa Beedi industry P Ltd Vs Asst. PF Commissioner.

However, the special allowance in Maharashtra stands for variable Dearness Allowance and a part of the minimum wages fixed by the government. As such it will attract PF contribution. Besides, all other payments like, gratuity, bonus etc are also to be calculated taking in to account the special allowance as part of statutory salary.

lease note,1. ESI deduction is statutory and companies are liabile to deduct the same from the eligible employees2. No individual can come out of ESI deduction on his own 3. If his gross salary is upto Rs.15000/-, please deduct ESI contribution4. Employee's parents, wife, children will also be covered and they are eligible for the ESI benefits